EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Transcribed Image Text:As CFO for Everything.Com, you are shopping for 6,000 square feet of usable office space for 25 of your employees in Center City,
USA. A leasing broker shows you space in Apex Atrium, a 10-story multitenanted office building. This building contains 360,000 square
feet of gross building area. A total of 54,000 square feet is interior space and is nonrentable. The nonrentable space consists of areas
contained in the basement, elevator core, and other mechanical and structural components. An additional 36,000 square feet of
common area is the lobby area usable by all tenants. The 6,000 square feet of usable area that you are looking for is on the seventh
floor, which contains 33,600 square feet of rentable area, and is leased by other tenants who occupy a combined total of 24,000
square feet of usable space. The leasing broker indicated that base rents will be $30 per square foot of rentable area
Required:
a. Calculate total rentable area in the building as though it would be rented to one tenant
b. Calculate the load factor and common area on the seventh floor only.
c. Calculate the rentable area, including the load factor for common areas on the seventh floor and the total rent per square foot that
will be paid by Everything Com for the coming year if it chooses to lease the space
d. Calculate the load factor and common area on the seventh floor, assuming that the owner adjusts the load factor for other common
areas in the building
e. Calculate total rent per square foot, assuming that adjusted load factors are applied to usable area for both the common areas in the
building lobby and on the seventh floor.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C Required D
Required E
Calculate total rentable area in the building as though it would be rented to one tenant.
Total rentable area
square feet
Required A
Required B >
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